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3.
Racing Toward a
Complete
Digital Lifestyle:
Digital Consumers
Crave More
The consumer electronics industry is undergoing massive
transformation as consumers become more connected
than ever to an increasing array of digital products and
services, anywhere, anytime. As smartphones and tablets
become commonplace, the focus of consumer interest is
already shifting. Wearable devices, digital health and other
forms of digital applications are gaining momentum as
empowered consumers add products and services to their
digital portfolio.
Accenture’s Digital Consumer Tech Survey polled 6000
consumers in six countries on their usage and buying
intentions for numerous consumer electronics devices.
The research indicates that consumers are creating highly
personalized constellations of digital products and services
that technology companies must both understand and
address to win a place in the consumer’s race toward a
complete digital lifestyle.
3

4.
Digital consumers
crave more
tablet, and 37 percent own a home gaming system. Yet
owning a smartphone does not preclude consumers from
owning other connected devices. More than a quarter
of all consumers surveyed own the combined set of a
smartphone, laptop and tablet–a significant percentage
relevant across age groups.
Accenture’s research shows that consumers want the
newest and most innovative devices, even if they already
have a staple of consumer electronics. Not only do
consumers plan to fill gaps and replace current products,
to a large extent they will add more of the same
(Figure 1).
Looking forward 12 months, multi-function devices
continue to dominate purchase plans as smartphones,
HDTVs and tablets top the list of devices that consumers
plan to buy. Of greater interest is that an overwhelming
majority of respondents planning to purchase new
devices in the next 12 months already own the device.
For example, among the 52 percent of consumers planning
to purchase a smartphone in the next 12 months, only
4 percent don’t currently own one. Twenty-nine percent
plan to purchase a replacement for their current
smartphone and 19 percent will buy one in addition to
the one they currently own.
Building on strong growth over the past years,
smartphones rank as the second most owned pieces
of digital consumer technology among 14 categories
in the survey ranging from computers and tablets to
televisions and gaming systems. Nearly three-fourths of
respondents own a laptop computer, 69 percent own a
smartphone, 57 percent own a HDTV, 37 percent own a
Figure 1: Purchase intentions
Which, if any, of the following digital devices are you planning to buy new in the next 12 months?
Smartphone
19%
HD TV
29%
21%
Tablet
11%
19%
Laptop
10%
16%
Home Games console
18%
12%
8%
4%
9%
11%
41%
40%
52% Multi-function devices
continue to dominate
purchase plans, with every
5th consumer planning to
buy one more smartphone,
HD-TV and tablet
4% 38%
5% 25%
Desktop and all in one PCs/Macs
9%
GPS navigation
9%
EBook reader
9%
5%
8%
Portable gaming device
9%
6%
5%
11%
3% 23%
7%
7%
In Vehicle entertainment system
connected to internet
7%
6%
5%
Set top box/ cable box from
broadband or TV service provder
7%
7%
22%
20%
3% 17%
2% 16%
23%
Regular TV
6%
8%
Basic or Feature mobile phone
6%
7%
TV Set top box/ cable box from
third party service provider
6%
5%
2% 15%
4%
Source: 2014 Accenture Digital Consumer Tech Survey,
Base: N=6021
4
18%
15%
Planning to buy in the next 12 months in
addition to my current device(s)
Planning to buy in the next 12 months as a
replacement
Planning to buy and don’t currently own

5.
Consumers living in Indian urban areas demonstrated
particularly keen purchasing interest. Among them, for
example, 80 percent plan to buy a smartphone in the next
12 months, up from 54 percent last year. Nearly two-thirds
(65%) intend to buy a tablet, an increase from 32 percent
the year before. U.S. findings sharply differed: 45 percent
intend to buy a smartphone compared with 35 percent last
year. And only 33 percent plan to buy a tablet versus 18
percent last year.
The survey also found that phablets are generating more
consumer interest. Combining smartphone and tablet PC
functions, phablet screen sizes range from 5-to-7 inches.
Standard tablets measure between 7-to-10 inches and
smartphones 4-to-5 inches. Of those who said they plan to
buy a smartphone in the next year, more than half
(51%) said they plan to buy a phablet.
In support of their attraction to the newest innovations,
consumers intend to increase spending more on devices
than associated content and services. One-third (33%) of
respondents plan to increase spending on digital devices
in the next 12 months. This compares to only 20 percent
planning to boost spending on broadband Internet services,
19 percent on mobile services and 13 percent in video or
other content (Figure 2).
Figure 2: Planned spending
How is the amount you spend on digital services and devices below likely to change in the next 12 months?
Stay about the
same
33%
52%
Decrease
04%
No spending planned
11%
Devices
08%
07%
06%
06%
Broadband
internet
Mobiles services
Source: 2014 Accenture Digital Consumer Tech Survey,
Base: N=5708
(excludes 14-17 years)
Not everyone wants
multiple devices
59%
08%
27%
66%
12%
51%
19%
68%
13%
08%
Increase
20%
21%
Other content (e.g.
gaming, music,
online newspapers
or magazines)
Video content
Given the above findings it is not unusual that half of
survey respondents indicate they prefer to use multiple
devices for different purposes. But, almost a third (29%)
report they would prefer having just one device housing
all the functionality they need. This consumer segment
consists mainly of late adopters on the spectrum of
technology adoption. Additionally, 21 percent of those
preferring a single device profile themselves as early
adopters or early majority (see sidebar: Identifying Early
Adopters). Furthermore, 35 percent of the 14 to 17 year
olds in the survey indicate they prefer to use one single
personal digital device on which they could access
Internet, e-mail, TV, music, phone calls and more.
This data indicates not everyone is excited by, or interested
to own, multiple form factors. Watch this market trend
going forward.
5

6.
Wearable
technology:
The new fashion
accessory
Consumers gravitate towards new functionality enabled
by wearable technology (Figure 3). Across the countries
surveyed, almost half of respondents expressed interest
in buying the new smartwatch functionality. More than
40 percent are interested in wearable eyeglasses. This is
remarkable because the products are, for the most part,
not commercially available. The interest in wearable
technology underscores the growing consumer desire to be
more digitally connected at all times.
Early adopter and early majority consumers are particularly
enthusiastic about new functionality, available either as
a wearable device or an app. More than 70 percent of
early adopters showed interest in buying functionality for
everything from vehicle navigation and home security,
to personal safety and health and fitness. For these
consumers wearable technology crystallizes a complete
digital lifestyle.
Figure 3: Interest in digital offerings
Interest in buying as either an application on the phone/laptop/desktop or as a dedicated device
Vehicle Navigation*
61
Home safety/
security monitor*
Per country
81 80
71 67
59
Health monitor*
53
47
45
39
43 43
41 37
54
Home comfort
and control*
45
Fitness monitor
52
Personal safety
monitor*
India
Per age group
69
65 67
51
Smartwatch
Vehicle
Entertainment system*
18-34
43
42
Very interested/Somewhat interested
Source: Accenture Digital Consumer Tech Survey, 2014
Base: N=6021
* Sample excludes 14-17 years=5708
Excludes D/N responses
Figures in percentage
6
0
Australia
50
45
UK
32
46
14-17
Wearable eye glass
S Africa
Health monitors
Fitness monitors
35-54
55+
24
US
Canada

7.
Health and fitness:
The quantified self
The “appification”
of everything
New functionality in wearable devices and apps enables
consumers to quantify, measure and access analytical
data faster and more ubiquitously, including data about
themselves. This spurs interest in personal health and
fitness management. More than half (54%) of respondents
are interested in buying a health monitor as either an
application on the phone, laptop or desktop or as a
dedicated device. Fifty-two percent are interested in
buying a fitness monitor device or application. Among
early adopters these percentages rise to more than threequarters of respondents. Interest is particularly high
in India and among consumers less than 35 years old.
These apps and devices can measure all types of physical
performance from sleep quality to exercise effectiveness,
underscoring intensifying consumer interest in the
“quantified self.”
As apps increasingly offer the functionality that previously
required a device purchase, consumer interest in apps
of all forms rises. Every app the survey asked about is
currently used or planned to be used by more than 50
percent of consumers: Cameras, GPS driving, gaming,
e-reading, voice or music recorder, radio, and TV (Figure
4). Thus, despite the large number of product categories
owned by respondents, a lot of the functionality they
need is being added and more often used via apps on their
multifunctional devices.
Figure 4: Interest in apps
‘Apps’ currently used on mobile devices or planned to use in the next 12 months
Camera
72
GPS driving
68
Gaming
67
e-book apps
57
Voice/
music recorder
56
53
Radio
TV
51
Source: Accenture Digital Consumer Tech Survey, 2014
Base: N=6021
Figures in percentage
7
A

8.
Digital trust is
negotiable
For consumers, the new digital lifestyle comes with one
string attached: They may be required to share a lot more
personal information so the issue of digital trust has come
to the forefront. Accenture’s survey shows that consumers
are actually pragmatists. Although aware of digital pitfalls
related to personal data, they will trade their data for
value under specific conditions.
Fifty percent of respondents lack confidence that the
security of their personal data is protected on the Internet.
However, more than half are willing to share personal data
in exchange for a monetary reward (discount or other) as
long as some basic rules apply. While 70 percent would
share in exchange for a reward if their personal data got
used only by their providers and 65 percent would share if
the provider complies with data protection laws, only 26
percent would share if the provider intended to share their
personal data with a third party (Figure 5).
Early adopters show much stronger confidence in the
security of the websites they use than late adopters. Only
24 percent of early adopters are not always confident their
personal data is secure on the Internet. This compares to
64 percent of late adopters. The most confident consumers
are found in the lower age groups and in India.
Figure 5: Data privacy trade-offs
Some digital service providers (e.g. online service providers etc…) offer additional services or discounts
if you agree to provide additional personal data in return (e.g. personal preferences, or areas of interest, preferred
locations etc). How likely would you be to participate in such an arrangement if the following applied…?
8
25
32
18
26
65
70
29
40
38
19
45
16
14
If your personal data
is to be used by your
provider only
Very likely
16
If the provider
complies with all the
data protection laws
in your country
Somewhat likely
Source: Accenture Digital Consumer Tech Survey, 2014
Base: N=6021
Excludes D/N responses
Figures in percentage
8
Not very likely
If your personal data
is shared by your
provider with a third
party
Not at all likely

9.
Implications for
consumer electronics
companies
Consumers are more empowered than ever. With many
consumer technologies such as smartphones now in
mainstream use and the pervasiveness of small, low cost,
innovative form factors, consumers can truly personalize
the way they use their range of products and services.
Now that they own multiple connected devices intended
for specific needs, consumers are creating their own
unique constellation of devices and services that fit their
personal lifestyles and activities in which they want
to engage. The empowerment of the digital consumer
to create this level of personalization has significant
implications for the strategies, customer interactions and
innovation choices of consumer electronics companies.
Ensure your
strategy aligns
to the needs of
the empowered
digital consumer.
Device makers and service providers must understand
explicitly how they fit into the digital constellations being
created by discrete customer segments. Some innovators
and early adopters are building their constellations by
combining numerous “best of breed” devices and services.
A majority want simplified, fully integrated systems.
Providers must ensure they understand how consumers are
building their preferences and how products and services
fulfill the needs of each consumer segment.
Entire product lines and whole markets are being rocked by
new offerings that consumers find so attractive that they
will pay a premium for them and render the traditional
price-performance trade-off irrelevant. Accenture calls
these “big-bang disrupters.” To fully serve the needs of the
new digital consumers in the era of big-bang disrupters,
companies need a strategy for targeting, recruiting and
activating a digital ecosystem. For example, companies
may choose not to enter the wearable technology segment
or to provide health and fitness devices or apps, but they
must recognize that these are trends that can’t be ignored.
Those that don’t fill the nascent aspects of their customers’
personal constellations may be leaving themselves
vulnerable. For example, the device maker that chooses
not to produce a wearable device should be thinking
about how its products and services will interact with the
wearables market so that those consumer experiences can
be met. This may involve collaboration with a wearable
device company such that the wearable device is more
compelling when integrated with its portfolio.
9

10.
Create a dynamic
and interactive
relationship with
consumers.
Invest in an
aggressive product
innovation and
product release
strategy.
Racing toward
a complete
digital lifestyle
10
0
Consumers want a two-way relationship with their
technology providers where there’s a mutual exchange
of value. Consumer technology companies must develop
a rich engagement strategy where both parties give and
receive value. This engagement strategy will likely be
different for each customer segment. Depending on the
segment, consumer technology companies may compete
favorably against other digital service providers by
enriching the consumer experience. Through differentiated
device features companies may increase the value of the
data that consumers are generating and willing to share
with these companies.
Consumers are looking for innovation and excitement
across consumer electronics in everything from
smartphones and tablets to more emerging categories.
There is strong intent to purchase in the next 12 months—
even among mature devices—as consumers continue to
add products to fit their lifestyles. There are also indicators
of strong markets for new categories of devices such as
phablets, health and fitness devices and other wearable
technologies. In short, now is the time for providers to
aggressively invest in product innovation. In doing so,
they must think about how new products will interact
with other aspects of consumers’ digital portfolios and
the incremental value proposition their new offering can
provide within the consumer’s digital life.
With objects of all types equipped with minuscule,
Internet-connected modules, the “Internet of things”
is rapidly becoming a reality and consumers are racing
toward a complete digital lifestyle. There is high consumer
interest in multiple form factors for multi-function devices,
including a strong appetite for wearable computing. As
consumers create their personal constellations of devices
and services personalized to meet their digital lifestyle,
opportunities for consumer technology companies abound.
Yet securing a place in the consumer’s personal customized
constellation of things requires a highly sophisticated
knowledge of customer segments. Leading providers will
understand how consumers are using each device in the
context of others, how to build engaging relationships
with customers and how new products can be introduced
to fulfill their unmet needs.

11.
Identifying Early
Adopters
Accenture asked each survey respondent to
identify which one of the following statements
best describes them and their attitude toward
new devices and services:
• Early adopters:
“I like to have the latest products and services
and be the first one in my group to have them”
• Early majority:
“I’m usually one of the first to try out and buy
new products and services”
• Late majority:
“I like to buy new products and services but I
often wait for others to try them out first”
• Late adopters:
“I usually wait until a majority of people have
started using a product or service and can find
out how good it is before
Eighteen percent indicated they were early
adopters and an additional 17 percent identified
themselves as early majority. India and South
Africa are overrepresented in the early adopter
group relative to other countries as are 14 to 17
year olds.
11